Market Brief Much Ado About Brexit But No Deal Yet

Market Brief: Much Ado About Brexit…But No Deal Yet

A cacophony of Brexit headlines whipsawed markets back and forth today, with the UK’s previous recalcitrant DUP party reportedly moving closer to accepting the most recent proposals. As of writing (and as far as your humble author can tell), it appears that the Prime Minister and EU have agreed on all the previously contentious issues except for VAT, and ironing out a full agreement will be tomorrow’s order of business. Parliamentary approval could still prove to be a major stumbling block.
FX: The euro and Swiss franc were the day’s strongest major currencies, while the New Zealand dollar brought up the rear.
US data: Retail Sales (September) declined -0.3% m/m, well below the +0.3% reading expected – this marked the first decline in seven months. Core Retail Sales decline -0.1% vs. +0.2% eyed. Last month’s retail sales report was revised higher, taking some of the sting out of the shocking headline reading.
Commodities: Both oil and gold edged higher today, gaining slightly less than 1%.

US indices closed modestly lower at the end of a choppy day.
Consumer Discretionary stocks (XLY) were the strongest major sector, while Energy (XLE) was the weakest despite the rise in oil prices.
Stocks on the move:
- General Motors (GM) gained another 1% after reaching a tentative agreement with the UAW union to end the month-long strike. The UAW votes on the deal tomorrow.
- Bank of America (BAC) tacked on 2% after reporting stronger-than-expected earnings.
- Amidst growing competition from the likes of Disney and Apple, Netflix (NFLX) reported better-than-expected earnings, but weaker revenues, guidance, and subscriber growth. The stock is trading up 4% in volatile after-hours trade, though tomorrow’s open will provide a better indication of traders’ outlook for the firm.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.